Israeli institutions continue to sell FX

ISRAEL - In Brief 10 Aug 2021 by Jonathan Katz
Israeli institutions continue to sell FX In June, Israeli savings institutions (managing over 450bn USD) were net sellers of FX of 3.9bn USD and 16bn YTD. In June, institutions sold assets abroad of 1.1bn and increased their FX hedge position by 2.8bn. Higher equity market valuations abroad have forced institutions to sell FX in order not to increase their FX exposure. In actuality, institutions have reduced their FX exposure/assets to 19% in June from 19.7% in Dec 2020, under the understanding the macro fundamentals remain shekel supportive and BoI intervention is expected to decline as the economy recovers. Clearly, if markets take a downturn, this trend will be reverved, and institutions will have to purchase FX in order to maintain their FX position, as they did in March 2020 (with net purchases of 10bn USD). Meanwhile, foreigners maintained their share of the Israel government bond market at 10.5% in June (10.6% in May), up from 7.3% in Dec 20 and 5.2% in April 2020. Foreigners’ share in the Makam market increased slightly to 32.3% in June from 32.1% in May and 18.7% in December 2020.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.